Government forms inter-ministerial group to monitor West Asia crisis impact

Government forms inter-ministerial group to monitor West Asia crisis impact

The Indian government has formed an Inter-Ministerial Group (IMG) to keep a tab on the situation in the Middle East, ANI reported, citing sources.

The group will be headed by Defense Minister Rajnath Singh and includes Union Home Minister Amit Shah, Finance Minister Nirmala Sitharaman, Petroleum Minister Hardeep Singh Puri, among others.

This decision comes amid global tensions due to the US-Israel conflict with Iran and its impact on oil supply routes.

Government cuts petrol, diesel duties

In a bid to stabilize fuel prices, the government on Friday reduced excise duties on petrol and diesel. The new rates are ₹3/liter for petrol and zero for diesel.

A windfall tax of ₹21.5/liter has been imposed on diesel exports.

These changes come as a response to disruptions in global energy supply chains due to the ongoing conflict in West Asia.

New excise duty on ATF introduced

The government has also revised the taxes on Aviation Turbine Fuel (ATF).

A new excise duty of ₹50/liter has been introduced, but exemptions will limit the effective duty to ₹29.5/liter.

Despite concerns over potential shortages due to the Iran war, the government has assured that there is no immediate threat. It said India has an oil stock cover for about 60 days and LPG cylinder supply for 30 days.